Car Sales Up 20% Here

Ford Market Share Soars

Domestic new-car sales rose 20 percent in January in the Chicago area to 28,805 units from 23,945 a year earlier, thanks to an 84 percent surge reported by Ford Motor Co. dealers.

Ford dealers sold 11,876 new cars in the Chicago area in January, up from 6,448 a year earlier. The total included 2,946 midsize Taurus and 2,097 subcompact Escort models, with those two accounting for 42 percent of all Ford sales in January.

Ford also captured a whopping 41 percent of the market in the month, compared with 49 percent by General Motors Corp. A year earlier Ford`s market share was only 27 percent of all cars sold; GM`s was 58 percent.

``We`re still wondering what happened,`` said Mack Ratchford, Chicago district sales manager for Ford. ``The month was so good it was unbelievable. ``We did have incentives on our best selling cars, $750 rebates on the Taurus and $400 on the Escort,`` he said. ``Those incentives remain on those cars through March 8, plus, starting Monday, the local dealers are also offering 6.9 percent financing for up to 36 months on Escort.

``Can we get 50 percent of the market here? That would be nice. It doesn`t happen that often,`` he said. Actually, Ford never has captured 50 percent.

GM sales totaled 14,173 units in January, up little more than 1 percent from 13,967 in January, 1987. Chrysler Corp. sales, which included those of the former American Motors Corp., fell 22 percent, to 2,756 units from 3,530 a year earlier.

While dealers got off to a decent start for the new year, they were quick to point out that sales in January, 1987, were extremely depressed.

``A year ago we had the rush to buy cars in December to beat the changes in the tax laws so that in January we got killed in sales,`` said Joe Hennessy, a Ford dealer in south suburban Calumet City.

Domestic dealers benefitted from incentive programs begun in the month as well as a growing price spread with Japanese imports, said Ross Kelsey, executive vice president of the Chicago Automobile Trade Association, which represents more than 700 Chicago area domestic new-car dealers.

The Japanese producers raised prices in January for the second time in the 1988 model year. Each carmaker cited the rising value of the Japanese yen against the U.S. dollar for the sticker increase.

``At the same time the domestics began new incentives, the Japanese were raising prices in January,`` Kelsey said. ``And that`s bound to have a good effect on domestic sales in coming months, too.``

In addition to sales numbers, dealers here are looking at the final attendance figures for the Chicago Auto Show, which concluded in McCormick Place Sunday. The show attracted 974,432 people, up from 964,627 a year ago.

``People at the show were shopping prices more so this year than last,``

Hennessy said.

Added Kelsey: ``There were some special local promotions at the show, from rebates to free phones for buying cars or trucks over the next several weeks. These promotions should mean a better picture for February, March and even April,`` he said.